If she signs the agreement (A MUST) then the laws apply. If she's late with payments she gets notification (after 14 days). But having said that the courts do often favour the tenant.If she's been paying for 12 years, why would she stop now? What's the difference in what she will pay and market rent? Why are you supplementing her income? I know…[Read more]

menia wrote:
Hi guys,I'm looking to buy an inevstement property in Sydney. My budget is $750k and this would be a buy and hold option, I'm in it for the negatove gearing and the capital growth.I'm interested to hear evryones opinion as to which areas are good to invest in?CheersM

Plenty of areas where you can lose money each year (ie negative…[Read more]

Jamie M wrote:

Catalyst wrote:
Where does the rent go into? Where do you pay the bills from? Where does the interest get debited from?

offset account Cheers Jamie

I was asking the poster where HER rent goes and where HER bills are paid to and from if she doesn't have a specific offset or LOC.

Where does the rent go into? Where do you pay the bills from? Where does the interest get debited from?I have a LOC for that purpose. I only keep a small amount in it. It's easier for the accountant as everything goes in and out of that one account. Rent goes in, bills, interest goes out.

I live in Sydney (baby boomer) in a big house. Would like to downsize a little but have too much junk. I wouldn't mind a duplex (owning both and renting half and living in the other half). I'd like a bit of a yard but not the massive one we have now (not that I do lawns- or pools). If I find the right block that's what I'll do.Strata fees are a…[Read more]

Good advice above. There are hundreds (thousands?) of people now doing courses by Rick Otton and the like) to set up these deals. Of course people do this to make money. They pay $5K to do the course and get the materials.It's not a scam but tread carefully. Personally (as I said) I would ONLY go this path if there is no other way to get into a…[Read more]

If you are going to use the equity to buy another property go to the bank and apply for a loan (as they requested). Then they will do a reval to assess your borrowing limit. When you apply for the loan give them details of your current house eg cut and past pictures of similar houses from RE.com showing the price to show what your is worth.…[Read more]

This is becoming popular in Australia and has been available overseas for a while. I haven't got time to type all the details but it is legal here. Read this site- there is an Ebook to download explaining it. Or google Rent to own. Or google Rick Otton- he set up Webuyhouses and he teaches courses on how to do this (they're the agents that get you…[Read more]

So everyone here is predicting every area in Australia will go down? haha. Yeah I'll wait for that. In the meantime I'm making money buying undervalued properties because on the news they said GFC2 is coming. Advice- don't watch the news. Do real research into what's happening IN THE AREA YOU WANT to buy. Get educated that way you won't be swayed…[Read more]

I would want to be a bit more sure than "should get a minimum $500K". As the figures could be close. Purchase = $210 + purchase costs $7K + demolish $15K? + interest for a year $13K + rates etc $2K + build $200K = $447K Landscaping? I'd want a close figure for the build. You only need to go over 10% overall and there's not much margin in it.If you…[Read more]

pjstew wrote:
Catalyst, Thanks for your comments. In terms of your LOC – is LOC able to be obtained from a different lender to my current home loan? I'm trying to avoid re financing.

You don't have to refinance. Just get a LOC from the same bank (they have the deeds so you can't use that property with another bank). As mentioned- get the new…[Read more]

pjstew wrote:
Richard if it makes things easier I have a home worth 500K and outstanding loan of 300K. i look forward to your comments. Paul

You could get a LOC for $100K. Just be sure to keep it for investment only. If it's used for both personal and investment you may have trouble claiming tax deductions. I also have another small LOC which…[Read more]

A mentor can be a great asset but you need to be careful. There are a lot of places offering mentoring. Some are franchised off and some of the "mentors" have not been in the game that long. With the ones touting their courses there are differing levels also. There is BIG money in selling your system with a 3 day workshop. Average around $6,000.…[Read more]

OK not answering your question but what experience do you have in sourcing deals and renovating/developing?Have you done a course? Sounds like an idea I heard at a seminar.

Unit? House? CG returns? rental returns?I know someone that just bought a unit there $1M – rents for $600pw. good for tax deductions I guess.That's going to need some SERIOUS capital growth to make up for the loss every year. Not my cup of tea though. I like to make money.

If the bank knows there is no insurance they will not lend you the money. I would not take the chance with insurance. Now some may say "what are the chances of it burning down". OK not great BUT insurance also covers public liability. So if someone visits you (or your neighbours) and trips down the stairs. Guess who pays the bills YOU. If they are…[Read more]

As above. There are many types of property and different reasons for buying them. Read, get an idea of what YOU want to get out of it. Cash flow, capital gain etc. This will help you determine what and where you will buy. Keep asking questions as you go. South West Sydney is as good an area as any to start if you feel comfortable with that area.…[Read more]

Your solicitor will not dig out the strata report. You need to instruct your solicitor (or do it yourself) to get a strata report. They don't just give you one. There are companies that go in, check the minutes etc and write a report with recommendations, concerns etc.Or you can get permission from the owners and do your own search (about…[Read more]

20). I always get a refund ATM. Just depends on how big ATM. My accountant needs to be property savvy. He/she needs to own property (a LOT) and know all the deductions I'm entitled to and how to get them. 11) of course, 12)yes13) yes+ info on structuring (trusts etc).

If you get permission from the owner and you know what you're looking for, you can go to the strata company and look yourself (usually $30). I would always check it though. As Shape said you could be in for a surprise. I did however buy one with MINUS $30 in the sinking fund. The thing that I'm looking for is special levies coming up. It would be…[Read more]